Quotation Pennerstorfer, Dieter. 2009. Spatial Price Competition in Retail Gasoline Markets: Evidence from Austria. Annals of Regional Science 43 (1): 133-158.


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Abstract

This paper investigates the influence of unbranded stations on the prices charged by branded stations in the retail gasoline sector, using data on 400 stations in Lower Austria. As the market is characterized by spatial competition, a spatial lag model is used to avoid misspecification. The results show that independent retailers generally heighten price competition, as they charge significantly lower prices. At the same time, as consumers might consider gasoline sold at unbranded stations to be inferior, they also reduce price competition for branded stations. Independents therefore ultimately have only a small influence on the prices charged by branded stations.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Annals of Regional Science
Citation Index SSCI
WU Journalrating 2009 A
Language English
Title Spatial Price Competition in Retail Gasoline Markets: Evidence from Austria
Volume 43
Number 1
Year 2009
Page from 133
Page to 158
Reviewed? Y
URL http://link.springer.com/article/10.1007/s00168-007-0206-7

Associations

People
Pennerstorfer, Dieter (Former researcher)
Organization
Institute for Economic Policy and Industrial Economics IN (Details)
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